Q386
Capital expenditures are recorded in the
A.
Trading account
B.
Profit & Loss account
C.
Balance sheet
AnswerD.
All of the above
Answer: Option C
Solution
Answer: Option C
Solution:
Capital expenditures are recorded in the Balance sheet. A capital expenditure is recorded as an asset, rather than charging it immediately to expense. It is classified as a fixed asset, which is then charged to expense over the useful life of the asset, using depreciation.